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ABOUT ADVANTA

ABOUT ADVANTA. Presence in Australia, Argentina, India and Thailand and it caters to other Asian and African markets from these countries. Revenues for FY 2005 (Proforma Nos.) Approx EUR 61 mio By Company Australia - 59% Argentina - 11% India - 17% Thailand - 13% Main Crops

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ABOUT ADVANTA

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  1. ABOUT ADVANTA Presence in Australia, Argentina, India and Thailand and it caters to other Asian and African markets from these countries. Revenues for FY 2005 (Proforma Nos.) Approx EUR 61 mio By Company Australia - 59% Argentina - 11% India - 17% Thailand - 13% Main Crops OIL SEEDS (Canola), SORGHUM (Grain & Forage), CORN, RICE. EBIDTA of approx EUR 10.5 – 11 mio Spend over 7% on R & D

  2. The following operations make up the global Advanta business today: Name Region of OperationMajor Crops Pacific Seeds Australia and Grain and forage sorghum, sunflower, corn, International tropical corn, hybrid canola, OP canola, oats Advanta India India Hybrid rice, hybrid mustard, hybrid corn, sunflower, grain and forage sorghum, pearl millet, cotton Pacific Seeds (Thai) Thailand Field corn, baby corn, sweet corn, sunflower, grain, forage sorghum Advanta Semillas Argentina Hybrid sunflower, grain and forage, sorghum, corn SUNSAT Global SUNSAT oilseeds Compañía Internacional Chile 50% joint venture of local sales and seed de Semillas production operations

  3. Pacific Seeds (Australia and International) • Largest seed company in Australia with 40+ year track record of superior performance. • Significant equity in the Pacific Seeds brand both locally and internationally. • Diversified crops and seasons (key crops: canola, sorghum, corn, sunflower and oats). • Established and rapidly growing international business with sales to Central and South-east Asia, Middle East and South/Central America with opportunity for continued expansion.

  4. Advanta India • A leading seed company in India with 10+ year track record of profitable operations. • The Indian market has vast scale and is one of the fastest growing seed markets in the world. • Accelerating conversion from OP to hybrid. • Advanta India is strategically positioned in key crops such as rice, hybrid mustard, sunflower and corn. • Export and seed production opportunities not yet fully realized.

  5. Pacific Seeds (Thailand) • A leader in key tropical vegetable crops with number one position in both sweet corn and baby corn. • Excellent growth prospects, especially in sweet and baby corn markets, where tropical types are increasingly attractive to processors. • Growth opportunities in other areas of South-east Asia (e.g., Vietnam, Myanmar, Laos, Indonesia)

  6. Advanta Semillas (Argentina) • Established and highly recognized brand in sunflower. • Grain and forage sorghum breeding program in Argentina has significant internal and international potential for the North, Central and South Americas.

  7. SUNSAT • R&D cost effectively located in Argentina, but a truly global opportunity. • Non-GM, modified oil sunflower program with proof of concept established and in the process of being scaled up for 2010 launch. • Oil quality that provides healthy balance of saturated and unsaturated oils together with the elimination of trans-fat risks. • The oil produced has properties tailored to the needs of various sectors of the food industry, such as healthy oil content, plasticity for margarine and spread production (without the need for partial hydrogenation), and stability. • Advanta has exclusive control of intellectual property in these seeds, plants, and oils.

  8. Compañía Internacional de Semillas (Chile) • Long established joint venture company with a highly respected local partner, Laserco S.A. • Excellent reputation as a counter-season producer of seed for North American, European and Australian/Asian customers. • Active in counter season production of a range of crops, including corn, sugar beet, sunflower and canola. • Active in local Chilean market with sales of sugar beet, corn, and forage seeds

  9. HISTORY OF ADVANTA • Originally formed as a seed joint venture by Royal Vanderhave Group of Netherlands and Zeneca Seeds in 1996. • In 2004 this was sold to Syngenta and from Syngenta to Fox & Paine when Syngenta was created by the merger of Agchem business of Zeneca & Novartis. • Since 2004 Fox & Paine sold various business’s • North Amercian business of Corn to Syngenta • Canola business in North America to Monsanto • Non Sugarbeet business and other business’s (excluding this business and Sugarbeet business) to Limagraine. • Sugarbeet to Florimond Desprez. • This was the last seed business bought by UPL

  10. SEED INDUSTRY • Future of Agriculture is going to be determined by Seeds • Better yields / productivity improvements • Better Quality • Value added features. • Fastest growing sector in Agriculture in India and expected to double in the next 4 to 5 years from $1 Bn currently to $2 Bn • A lot of R & D in both bio-technology and Non-biotechnology space • Highly regulated for bio-tech space • 3 to 5 years of development time frame for each hybrid. • Need to have a continuous pipelines of hybrids

  11. DYNAMICS OF THE SECTOR • Impacted by rains, weather conditions (same as Agchem). • First in the agricultural cycle (only once) v/s Agchem which follow through the entire cycle. • Highly Inventory intensive. • High lead times to produce (hence need very careful forecasting) • Quality and characteristics of the product very critical. • Need to continuously upgrade the germplasm.

  12. WHY ADVANTA • Allows us to jump start our entry into Seeds. • Largest and best positioned independent seed company in the high growth Asia-Pacific region and were able to acquire at a decent valuation. • Strong market positions in each region and product. • Access to excellent, elite and proprietary germplasm (very critical) portfolio – integrated with bio-science capability. • takes decades to develop • speeds up plant breeding • not easily replicable. • 20 years of track record of sales, growth and profitability. • Experienced Management team with decades of industry experience. • Developing ‘SUNSAT’ a new high tech breeding program in Sunflower with opportunity for downstream value capture.

  13. WHY SEEDS • Common distribution channel plus customer (farmer) and Same sector Agriculture. • Captive market for UPL’s seed treatment business as well as develop new capabilities in this sector. • Equally protected industry due to its high IP requirement plus protection of the germplasm. • Most global majors are investing in this sector due to these reasons (e.g. Monsanto, Syngenta, Dow, etc.) and UPL believes that it should also align itself to derive the future benefit. • It meets our internal hurdle rate of return.

  14. Participate in this exciting Industry Sector Synergy in Distribution / Product Leverage for Expansions Build a platform to enable us to rapidly expand in this sector in 3 to 5 years down the line Use India’s efficient and cost advantageous knowledge and R & D efforts to build in this sector Reduce our eventual exposure to EUR 30 - 35 mio with 49 - 51% ownership. To come back to shareholders with a revamped structure within 3 months UPL’S PLAN OF ACTION

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